Islamabad: The federal government’s proposed National Remittance Loyalty Programme is expected to be launched in September this year — with the initiative aimed at encouraging overseas Pakistanis to use formal banking channels for sending their remittances, a news source reported.
According to World Bank predictions, remittances could decline by as much as 20%, since migrant workers were particularly vulnerable to unemployment as a result of the coronavirus pandemic.
Reportedly, the loyalty programme and the incentive package will be launched from the next fiscal year. One of the major provisions introduced under this package will be the exemption of withholding tax on domestic bank transactions related to remittances received during the year.
The government has also directed the Federal Board of Revenue to prepare the draft for necessary amendments in the income tax ordinance for this purpose.
In addition, a high-level committee has been formed to chalk out the details of the loyalty programme. The committee consists of representatives from the State Bank, Ministry of Finance, Federal Board of Revenue, Overseas Pakistanis Ministry and other relevant departments.
